In early trade on Thursday, the rupee climbed 11 paise to ₹95.17 per dollar, its strongest level since the previous session’s ₹95.28, after the Fed signaled a pause in policy tightening.
The Fed’s decision to hold the federal funds rate at a 4.00% ceiling—unchanged from the 3.75–4.00% band—sent a muted shock to the dollar, which slipped 0.04% to 102.15 on the dollar index.
Market analysts point to the RBI’s steady presence in the market and a $721‑billion foreign‑exchange reserve as key buffers, while the rupee remains under pressure from higher crude prices and firmer U.S. yields.
Brent crude fell 1.03% to $114.13 per barrel, and domestic equity indices rose, with the BSE Sensex gaining 550 points to 73,409.06 and the NSE Nifty 50 climbing above 22,730.
Foreign institutional investors bought Indian equities worth ₹871.83 crore in the previous session, signalling confidence amid the currency’s rebound.
Analysts now monitor upcoming domestic inflation data, as stronger figures could prompt a December rate hike, while softer numbers may ease the dollar’s pressure on emerging‑market currencies.